LANDSCAPING  THE  SINGAPOREAN  FinTech  ECOSYSTEM  

Provided  by  FinTech  TWINS,    August  2016  

Why  FinTech  ma-ers  in  Singapore?          

Like  other  FinTech  hubs,  such  as  London  or  NY,  Singapore  clearly  has  the  infrastructure  and  people  in  place  to  become  a  global  FinTech  hub.  The   world’s   only   city-­‐state   is   posiJoned   as   a   perfect   gateway   to  Southeast   Asian   markets   (Thailand,   Malaysia,   Myanmar,   Indonesia  etc).   It   also   benefits   from   a   strong   regulatory   support,   a   business-­‐friendly  environment,  strong  networking  opportuniJes,   together  with  a  pool  of  financial   talents   coming   from  all   over   the  world.   Singapore  has  recently  seen  a  flurry  of  new  tech  startups  springing-­‐up.  APracted  by  the  ease  of  seQng-­‐up  a  new  business,  Singaporean  FinTech  startups  disJnguish   themselves   by   building   scalable   business   models   with  cross-­‐border  offerings  from  their  very  beginning.  Contrary  to  Chinese,  Indian   or   even   Japanese   startups,   Singaporean   ones   cannot   really  capitalise  on  the  small  local  market  (5.4M  people)  and  have  therefore  no  choice  but   to   think  global   from   their   very   start.   This   is  where   the  Singaporean   FinTech   ecosystem’s   strength   might   lie   in:   a   red   lion  leveraging  on   its   insular   geography   to   raise   FinTech   stars  with   global  ambiJons.  

Content    

1  -­‐  The  Singaporean  financial  sector  2  -­‐  FinTech  specificiJes  in  Singapore  3  -­‐  The  Singaporean  FinTech  ecosystem  4  -­‐  Main  FinTech  areas  5  -­‐  Conclusion  6  -­‐  APPENDIX  

Did  you  know…?  

There   are   over   200   banks   with   total   assets   of   $2  trillion  with  operaJonal  headquarters  in  Singapore  (1)  

The   Southeast   Asian   lending   market   remains  untapped:   less   than   0.1%   of   all   loans   are   originated  through   online   marketplaces   in   Southeast   Asia   (vs.  10%  in  China  and  2-­‐3%  in  the  US  and  UK)  (3)  

Singapore   has   become   Asia-­‐Pacific’s   first   startup  ecosystem,   and   has   made   it   to   the   top   10   global  startup   ecosystem.   About   2,400-­‐3,600   acJve   tech  startups  are  calling  the  city-­‐state  home  (2)  

A  small  market  (5.4M  people),  but  at  the  crossroad  of  the  625M  people  (worth  US$2.6  trillion)  ASEAN  single  market,  within  a  radius  of  4  hours-­‐flight  Jme.    

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Singapore,  by  far,  remains  the  economy  with  the  most  business-­‐friendly  regulaJons  in  the  world  (the  UK  and  the  US  are  ranked  6th  and  7th  (1)  

In   Southeast   Asia,   there   are   10   countries   with   10  different   currencies:   an   opportunity   in   cross-­‐border  transacJons?  

Can  Singapore  leverage  on  its  dis@nc@ve  insular  posi@on  to  become  a  global  FinTech  hub?  

FinTech   funding   in   Southeast   Asia   reached   $41.5  million   in   Q2   2016.   Singapore   alone   accounted   for  over  3/4  of  the  region’s  funding,  half  of  the  deals,  and  three  of  the  top  five  deals  by  value  (9)  

1  -­‐  The  Singaporean  financial  sector  :  well-­‐established    and  diversified  

•  A  giant  banking  sector    

There   are   over   200   banks   with   total   assets   of   $2   trillion   with   operaJonal  headquarters   in   Singapore.   IT   procurement   budgets   of   those   banks   reached  $485   billion   in   2015(1).   Following   global   trends   towards   Jght   collaboraJon  among  tradiJonal  financial  insJtuJons  and  FinTech  startups,  Singaporean  banks  are   making   a   step   forward   nurturing   FinTech   incubaJon,   investment,   and  ecosystem  development.  

In  December  2015,  DBS  Bank,  Singapore’s  largest  bank  and  a  leading   bank   in   Asia,   announced   that   it   will   invest   $7.1  million   in   iniJaJves   that   will   support   FinTech   development  over  the  next  five  years.  In  April  2016,  DBS  officially  unveiled  Digibank,  India’s  first  mobile-­‐only  bank.  

CiJ’s   Global   TransacJon   Services   (GTS)   launched   the   CiJ  InnovaJon   Lab   in   Singapore   that   consists   of   a   Client  Experience  Centre  and  a  Client  CollaboraJon  Centre.  It  is  the  first   innovaJon   lab   dedicated   to   the   bank’s   insJtuJonal  clients   in   Asia-­‐Pacific   (APAC).   The   Lab   demonstrates   CiJ’s  latest   transacJon   banking   soluJons   and   clients   can   ‘test  drive’   them   through   live   demonstraJons   with   situaJon  analysis  and  discussions  with  GTS’  product  experts.  

•  A  thriving  Wealth  Management  and  Insurance  industry    

Singapore  is  recognized  as  a  premier  wealth  management  hub  offering  investors  direct  access  to  a  plethora  of  regional  and  global  investment  opportuniJes.  As  a  leading   insurance  marketplace   in  Asia,  Singapore  also  hosts  a  vibrant  ecosystem  of   life   and   general   insurers,   reinsurers,   capJves,   intermediaries   and   ancillary  service  providers.  

UBS  set  up  a  technology  innovaJon  lab  in  Singapore  to  meet  the  changing   demands   in  wealth  management   and   virtual   advising.  Called  EVOLVE  –  UBS  Centre  for  Design  Thinking  and  InnovaJon  in  Singapore,  the  lab  is  the  first  of  its  kind  for  UBS  in  APAC.  UBS  also   rolled   out   its   new   digital   service—the   UBS   Wealth  Management   app—in   response   to   increasing   client   preferences  for  digital  soluJons  in  Asia.  

In  December  2015,  Aviva  launched  its  ‘Digital  Garage’  -­‐  a  dedicated  space  where  technical  specialists,  creaJve  designers  and  business  leaders  collaborate  and  test  new  insurance  ideas  and  services.  

•  A  ‘Smart  Financial  Centre’  supported  by  the  regulator   •  An  open-­‐access  financial  community  

The   financial   sector   is   an   integral   part   of   Singapore’s  ambiJon   to   be   a   ‘Smart   NaJon’.   The   MAS   (Monetary  Authority   of   Singapore)   seeks   to   create   a   Smart   Financial  Centre  and  has  commiPed  US$167  million  over  five  years  to  FinTech  growth.    

‘FinTech   firms   are   not   here   to   challenge  you.  They  are  here  to  partner  with  you’    Sopnendu  Mohanty,   MAS   Chief   FinTech   Officer,   appointed   in   July  2015  to  head  the  new  FinTech  and  InnovaBon  Group  (FTIG)  

‘In   Singapore,   you   can   literally   cross   the   street   and  talk  to  the  regulator,  the  banks,  the  startups.  I  think  

this  open  access   is   just  amazing,  compared  to  even  London  or  Hong  Kong.  Here  it  is  very  much  like  a  ‘let’s  go  for  a  coffee  aHtude’.  

Markus  Gnirck,  co-­‐founder  of  Tryb,  and  founder  of  Startupbootcamp  FinTech  Singapore  

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2  -­‐  FinTech  specifici@es  in  Singapore  

A   small  market   (5.4M  people),   but   at   the   crossroad   of   the  625M   people   (worth   US$2.6   trillion)   ASEAN   single  market,  within  a  radius  of  4  hours-­‐flight  Jme.    

The   Monetary   Authority   of   Singapore   (MAS)   is   both   the  central  bank  and  the  regulator.   It   is  the  first  central  bank   in  the   word   to   directly   fund   the   FinTech   sector   with   a   $167  million   scheme   to   promote   innovaJon   and   a   dedicated  FinTech  team.  

Gateway  to  Southeast  Asia  

Strong  regulatory  support  

Singaporean  specifici@es   Insights  for  Banks   Insights  for  FinTech  

A  test-­‐bed  market  before  expansion  

More   than   52%   of   all   Singapore   startup   employees   are  foreign  born  (46%  above  APAC  average),  a  situaJon  quite    like   the   Silicon   Valley   and   London.   Yet,   talent   is  Singapore’s  biggest  boPleneck.  It  takes  17%  longer  to  hire  an   engineer   than   in   the   Silicon   Valley   and   salaries   are  higher  than  in  the  rest  of  the  APAC  region.  (2)  

Geographically   located   amongst   very  much   less   matured   financial   markets,  with   both   large   growing   middle   class  and   large   unbanked   populaJon,  Singapore   can   be   a   test-­‐bed   market  before  regional  expansion.  

Foreign  talent,  but  few  engineers  

FerJle  ground  for  startups  

Singapore   has   become   APAC’s   first   startup   ecosystem,   and  has  made   it   to   the   top   10   global   startup   ecosystem.  About  2,400-­‐3,600   acJve   tech   startups   are   calling   the   city-­‐state  home.  (2)  

Outsource  engineering  skills  It   might   worth   considering   recruiJng/outsourcing   ‘cheaper’   engineering  talents   in   neighbouring   countries  (India,  Malaysia).  

The   MAS   has   encouraged   banks   and  FinTech   to   collaborate,   especially  towards  an  open-­‐API  architecture.(6)  

Strong  VC  community  

A  rich  network  of  mentors  

With   1.27   mentors   per   startup   (26%   above   regional  average),   Singapore   has   the   highest   number   of   advisors  with  equity  in  the  region.  (2)  

FinTech  funding  in  Southeast  Asia  reached  $41.5  million  in  Q2   2016.   Singapore   alone   accounted   for   over   3/4   of   the  region’s  funding,  half  of  the  deals,  and  three  of  the  top  five  deals  by  value  (9)  

Global  and  ‘Smart’  Financial  Centre  

As  part  of  the  city-­‐state’s  ambiJon  of  becoming  the  world’s  first   smart   naJon,   Singapore   is   also   working   towards  becoming  a  ‘Smart  Financial  Centre’  by  promoJng  the  use  of  technology   in  financial  services.  Singapore   is  ranked  the  4th  largest  financial  centre  in  the  world  (4)  

Infrastructure,   high-­‐skilled   labour   and  business-­‐friendly  taxaJon  have  aPracted  over  200  banks,  which  have  operaJonal  headquarters  in  the  City-­‐State  (1)  

Local   startups   benefit   from   access   to  banking   consumers   and   mulJnaJonal  corporaJons   to   scale   their   business,  improve  their  processes,  and  access   to  VC  or  corporate  funds.  

Connect-­‐the-­‐(FinTech)-­‐Dots  

Bank/FinTech  collaboraJon  

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3  -­‐  The  Singaporean  FinTech  ecosystem  •  FinTech  startups  

•  Incubators  and  accelerators  

ü  About  80  FinTech  startups  out  of  which  20  startups  are  in  payments  or  remiPance.  (6)  ü  RelaJvely  nascent:  90%  sJll  at  a  seed  or  early-­‐stage.(6)  

�  

See  Appendix  -­‐  The  Singaporean  FinTech  startups(6)  

•  Venture  Capital  firms  

Life.SREDA  VC  is  one  of  the  three  independent  FinTech-­‐only  VC  firms  in  the  world  and  has  recently  relocated  from  Moscow  to  Singapore.  The  $100M  fund  has  just  invested  in  Fastacash  and  also  launched  a  Singapore-­‐based  FinTech  post-­‐seed  accelerator  «InspirAsia».  

ü  In  the  last  18  months,  Southeast  Asian  FinTech  startups  took  a  combined  $345  million  of  funding,  with  a  special  interest  in  payments  and  lead  generaJon.  (3)    ü  Singapore  can  be  seen  as  a  funding  home  for  early-­‐stage  Southeast  Asian  startups.  

‘The  investment  base  is  small  and  the  amount  invested  too.  In  the  US  a  seed  round  could  be  anything  below  2  million  US$,  here  it  is  less  than  750K’,  Rakhil  Fernando  CEO  of  Kashmi.  

ü  Private  accelerators:  Startupbootcamp,  Singapore  FinTech  ConsorJum,  Singapore  FinTech  Startups,  Plug  and  Play  Singapore.    

Startupbootcamp  FinTech  is  the  leading  accelerator  focused  on  financial  innovaJon.  Located  in  the  BASH,  Singapore’s  biggest  integrated  startups  space,  the  accelerator  provides  funding,  mentorship  and  office  space  along  with  access  to  a  global  network  of  investors  and  VCs.  

The  Singapore  FinTech  ConsorJum  is  a  FinTech  Ecosystem  builder  that  aims  to  further  the  development,  interacJon  and  acceleraJon  of  the  FinTech  ecosystem  in  Singapore  and  Southeast  Asia.    

ü  Banking  and  Technology  Industry  accelerators:  DBS  Accelerator,  FinLab  (a  JV  between  UOB  and  Infocomm  Investments  -­‐  a  governmental  enJty),  Open  Vault  OCBC  Bank.    ü  Academic  incubators:  The  InsJtute  of  InnovaJon  and  Entrepreneurship  (from  the  Singapore  Management  University),  SimKee  Boon  InsJtute  for  Financial  Economics  

(from  SKBI),  NTUiJve  (from  NTU),  NUS  Enterprise  (from  the  NaJonal  University  of  Singapore).  

Dymon  Asia  Ventures  is  a  venture  capital  fund  based  in  Singapore  that  exclusively  partners  with  FinTech  companies.  

•  Events  organisers  and  Media  

‘We  wanted  to  create  an  inspiring  and  creaUve  forum  to  change  financial  services  for  the  beVer’  Rob  Findley,    CEO  of  Next  Money  

Next  Money  is  the  world’s  fastest  growing  FinTech  collaboraJon  plaworm  built  by  a  global  network  of  innovators,  communiJes,  events  and  programs.    

ü   Healthy  and  vibrant  media  industry  to  promote  FinTech:  e27,  Tech  in  Asia,  FST  Media.  However,  with  the  mulJplicaJon  of  events  and  meetups,  there  might  be  a  risk  of  ‘too-­‐much-­‐noise’  (a  lot  of  ‘PR  events’).  

‘There  is  too  much  noise,  too  many  accelerators  and  too  many  events’  

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•  A  proac@ve  regulator  

Key  milestones   Date   Details  

Financial  Sector  Technology  &  InnovaJon  (FTSI)  Scheme  and  FinTech  Office.  

August  2015  

The  MAS  appointed  Sopnendu  Mohanty  to  head  the  new  FinTech  Office  and  a  five-­‐year  plan,  commiQng  S$225  million  (US$167  million),  to  support  FnTech  innovaJon.  Led  by  the  MAS,  the  FinTech  office  brings  together  mulJple  government  agencies  (Economic  Development  Board,  Infocomm  Investments  Pte  Ltd,  Info-­‐communicaJon  Media  Development  Authority,  and  SPRING  Singapore)  under  one  roof,  thus  facilitaJng  communicaJon  with  the  FinTech  community.  

First  ever  FinTech  bridge  between  the  UK  and  Singapore  

May  2016   The  agreement  will  enable  the  BriJsh  and  Singaporean  regulators  (FCA  and  MAS)  to  refer  FinTech  firms  to  their  counterparts  across  the  globe.  It  also  sets  out  how  the  regulators  plan  to  share  and  use  informaJon  on  financial  services  innovaJon  in  their  respecJve  markets.  

AdopJon  of  a  risk-­‐based  approach  to  FinTech  innovaJon  in  the  unregulated  sector  

April  2016   AdopJng  a  risk-­‐based  approach,  the  MAS  cauJoned  that  introducing  regulaJon  prematurely  might  sJfle  innovaJon.  The  legal  and  regulatory  framework  allows  startups  to  take  innovaJve  ideas  to  market  without  the  MAS’s  formal  endorsement  as  long  as  the  risks  are  diligently  assessed  and  managed.    

Regulatory  sandbox   June  2016   The  regulatory  sandbox  allows  local  FinTech  startups  to  experiment  with  their  new  and  innovaJve  soluJons  without  the  fear  of  punishment  in  the  case  of  failure  

CollaboraJon  with  Australia   June  2016   Singapore  and  Australia  signed  a  new  pact,  the  InnovaJon  FuncJons  CooperaJon  Agreement  ,  that  will  allow  FinTech  firms  from  both  countries  to  accelerate  the  process  of  entering  each  other’s  markets.  

Simplified  regulaJons  for  securiJes  crowdfunding  (SCF)  

June  2016   New  measures  to  simplify  the  use  of  it  for  ventures  that  are  looking  for  funding  and  for  crowdfunding  plaworms.  

First  Singapore  FinTech  FesJval   November  2016  

The  MAS  and  the  AssociaJon  of  Banks  in  Singapore  (ABS)  announced  a  series  of  conference,  a  ‘FinTech  hackcelerator’  with  awards  for  the  most  creaJve  FinTech  apps.  

ü  The  Monetary  Authority  of  Singapore  (MAS)  is  probably  seen  as  the  most  proacJve  regulator  in  Asia  and  has  taken  key  acJons  toward  FinTech  since  August  2015.  

ü   Open-­‐community  and  co-­‐crea@on  of  rules:  the  most  disJncJve  aspect  is  the  MAS’s  emphasis  on  co-­‐creaJng  rules  and  guidelines  in  consultaJon  with  industry  stakeholders,  for  instance,  joint-­‐hosJng  hackathon  acJviJes  with  accelerators.  

‘The  good  thing  about  Singapore  compared  to  Hong  Kong  is  that  the  central  bank  is  preVy  hands-­‐on,  and  is  quite  open  about  building  the  FinTech  scene’.  Steven  Tong  –  Managing  Director  of  Startupbootcamp  FinTech  Singapore  

•  New  models  of  ‘partnerships’  between  banks  and  FinTech  

Tryb  invests  in  technology  companies  and  plaworms  transforming  financial  services  in  Asia  and  sits  at  the  nexus  of  relaJonships,  flow  and  asset  to  build  leading  technology  firms.  Tryb  creates  value  by  collaboraJng  with  financial  insJtuJons,  technology  vendors,  government  agencies  and  investor  groups.  

‘The  big  issue  is  about  the  implementaUon  of  FinTech  soluUons  within  banking  systems.  Everyone  claim  to  be  innovaUve,  great,  but  it  sUll  takes  years  to  integrate  a  soluUon  in  a  tradiUonal  system!’.  Markus  Gnirck,  co-­‐founder  of  Tryb  

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4  -­‐  Main  FinTech  areas  •  Payment  and  remi-ance  

Fastacash  does  mobile  payments,  but  strictly  through  a  B2B  approach,  and  has  aPracted  internaJonal  interest  and  funding,  raising  a  total  of  US$23.5  million  so  far.  The  company  offers  a  payment  plaworm  that   its  partners  can  use  to  enable  value  transfers  (such  as  money,  mobile  credit,  or  other  tokens  of  value)  using  mobile  and  social  networks.  Fastacash  has  partnered  with  DBS  bank  in  Singapore  and  Axis  Bank  in  India.  

‘In  ASEAN,  wealth  management  is  coming  up  a  lot‘.  Markus  Gnirck,  co-­‐founder  of  Tryb,    

•  Wealth  Management  and  insurance  

Payments  and  remiPances  is  undoubtedly  the  most  crowded  sub-­‐segment  with  about  20  startups.  Due  to  the  fragmentaJon  of  Southeast  Asia  (10  countries  with  10  different  currencies)  and  the  high  margins  taken  by  tradiJonal  banks  (it  is  esJmated  that  transacJon  fees  alone  make  up  over  60%  of  Asian  banks’  revenue(7)),  there  is  a  strong  need  to  address  the  inefficiency  in  cross-­‐border  transacJons.  

Dragon  Wealth  provides  a  one-­‐stop  soluJon  for  financial  advisors  to  aPract  and  interact  with  customers  and  moneJze  accounts.  Everything  from  building  a  website  to  providing  relevant  arJcles  to  share  can  be  accomplished  on  the  plaworm.  

Kashmi  is  an  Asian  based  C2C  mobile  payment  applicaJon,  that  allows  clients  to  exchange  payments  with  people  in  their  social  circles  via  a  smartphone.  

‘The  idea  of  Kashmi  came  from  the  success  of  Venmo  in  the  US‘.  Rakhil  Fernando,  CEO  of  Kashmi    

Policy  Pal  is  a  digital  insurance  manager  that  allows  users  to  manage  mulJple  insurance  policies  through  a  single  app.  It  idenJfies  possible  areas  in  which  they  require  coverage  -­‐  or  if  they  have  double  coverage  in  the  same  areas.  

Incorporated   in  Singapore,  2C2P  is  a   leading  Southeast  Asian  payment  provider  based  in  Thailand  that  focuses  on  omni-­‐channel  payment  services  that   support   banks,   e-­‐commerce   businesses   and   retailers.   It   also   enables   electronic   and  mobile   commerce   apart   from   payments   through   bank  channels  such  as  ATMs,  internet  and  mobile  banking.  

‘All  major  European  insurance  companies  have  opened  their  own  Labs  here  in  Singapore,  even  if  they  don’t  necessarily  call  it  a  Lab,  like  Allianz  for  instance’.  Steven  Tong,  Managing  Director  of  Startupbootcamp  FinTech  Singapore    

Toast  is  a  Singaporean-­‐based  P2P  money  transfer  applicaJon  that  allows  Filipinos  in  Hong  Kong  to  remit  money  back  home  directly  from  a  smartphone  without  the  need  to  uJlise  exisJng  banking  infrastructure  or  queue  up  at  a  Money  Transfer  Shop.  

‘With  Otonomos,  you  can  do  everything  you  could  normally  do  in  a  tradiUonal  limited  company  -­‐  create  the  company,  issuing  share,  passing  resoluUons  -­‐  We  just  bring  that  to  a  digital  format!’  Han  Verstraete,  CEO  of  Otonomos.    

OTONOMOS  enables  companies’  owners  form,  fund  and  govern  their  firms  through  the  world's  first  Blockchain  Chartered  Company.  

•  Blockchain  technology  

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5  -­‐  Conclusion:  towards  a  Southeast  Asian  FinTech  or  global  hub?  

•  A  gateway  to  Southeast  Asia  or  from  Southeast  Asia?  Given  the  small  Singaporean  market  and  the  very  fragmented  nature  of  Southeast  Asia,  FinTech  startups  launched  in  Singapore  have  no  choice  but  to  build  their  business  model  so  that  it  can  be  easily  scalable  or  replicable  in  neighbouring  markets.  This  might  explain  why  so  many  investors  are  turning  their  eyes  towards  Singaporean  startups:  they  received  the  3/4  of  the  Southeast  Asian  FinTech  funding  in  Q2  2016  (9).  Similarly,  Southeast  Asian  startups  are  increasingly  looking  at  the  local  investor  scene.  

•  Accelerator  fa@gue  and  FinTech  consolida@on  While  each  bank-­‐sponsored  accelerator  program  has  its  own  focus,  there  are  indicaJons  that  ‘accelerator  faJgue’  is  starJng  to  set  in.  We  believe  the  ‘accelerator’  model  is  undoubtedly  a  good  educaJon  plaworm  for  both  banks  and  FinTech  startups,  but  does  not  always  help  implemenJng  FinTech  soluJons  in  banking  systems.  Among  those  incubated  FinTech  startups,  how  many  will  effecJvely  integrate  their  soluJons  within  a  bank?  As  a  result,  some  consolidaJon  may  occur  in  the  short-­‐term  and  new  ‘banks/FinTech  partnership’  models  may  emerge,  such  as  the  technology  plaworm  Tryb(8).    

•   Engineering  talents  crunch  and  outsourcing  Due  to  high  cost  of  living  and  lack  of  sozware  engineers,  Singaporean  FinTech  startups  may  further  externalise  their  IT  brains  in  Indonesia,  Malaysia  etc.    

•  Following  on  the  Bri@sh  example  and  connec@ng-­‐the-­‐(FinTech)-­‐dots  The  MAS  has  been  a  pioneer  in  following  BriJsh  best-­‐pracJces  (sand  boxes  and  a  ‘risk-­‐based’  approach),  and  also  the  first  country  to  launch  a  ‘FinTech  bridge’.  We  believe  Singapore  has  a  strong  role  to  play  across  the  ASEAN  region  to  addressing  the  needs  of  the  under-­‐banked  and  unbanked  people.  

Talents  

Wealth  /  Capital  availability  

Inadequacies  in  the  banking  industry  

Pool  of  financial  talents  and  foreign  talents.  

‘Engineering   talent   crunch’:   It   takes   17%   longer   to   hire   an  engineer  than  in  the  Silicon  Valley  and  salaries  are  higher  than  in  the  rest  of  the  APAC  region.  

Supervision  

Strong   open-­‐community   and   cooperaJon   between   the  regulator  (MAS),  banks,  accelerators  and  startups.  

The  MAS  has  been  proacJve   in  seQng  a  clear   legal  and  regulatory   framework   and   has   commiPed   a   US$167  million  investment  in  nurturing  the  FinTech  ecosystem.    

Network  

-­‐Payments  and  remiPance:  there  are  10  countries  in  Southeast  Asia,  with  10  different  currencies.  -­‐Marketplace:  even  thought  the  Singaporean  lending  market  is  saturated,   the   Southeast   Asian   lending   market   remains  untapped:   less   than   0.1%   of   all   loans   are   originated   through  online   marketplaces   in   Southeast   Asia   (vs.   10%   in   China   and  2-­‐3%  in  the  US  and  UK)  (3)  

Opportunity  for  the  growth  of  a  FinTech  hub  

Threat  for  the  growth  of  a  FinTech  hub  

Legend  

•  The  ‘TWIN$  model’  for  evalua@ng  the  Singaporean  FinTech  ecosystem  

•  Our  ‘FinTech  TWIN$  vision’    

Based  on  our  experience,  we  believe  that  the  Singaporean  FinTech  ecosystem  will  evolve  towards  the  following  trends:  

The   heterogeneous   Southeast   Asian   regulaJons   might  make  it  difficult  for  startups  to  navigate  and  scale  in  the  region.  

With   the  mulJplicaJon   of   banks   labs,   accelerators   and  events,  there  might  be  a  risk  of  ‘accelerator  faJgue’  and  too-­‐much-­‐noise  in  the  industry.  

7  

Singapore  is  ranked  the  4th  largest  financial  centre  in  the  world  and  has  aPracted  over  3/4  of  the  Southeast  Asian  region’s  FinTech  Funding  in  Q2  2016  (9).  

APPENDIX  –  The  Singaporean  FinTech  scene  

Source:  SME  FinTech  

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 •  Web  references:    

(1)  hPps://letstalkpayments.com/why-­‐asia-­‐will-­‐dominate-­‐the-­‐world-­‐of-­‐financial-­‐technology/  (2)  The  Global  Startup  Ecosystem  Ranking  2015  –  Excluding  China,  South  Korea  and  Japan  (3)  hPps://techcrunch.com/2016/08/02/looking-­‐beyond-­‐the-­‐hype-­‐at-­‐FinTech-­‐in-­‐southeast-­‐asia/  (4)  Global  Financial  Centres  Index,  2015  (5)  hPps://www.techinasia.com/highest-­‐startup-­‐funding-­‐rounds-­‐southeast-­‐asia-­‐2015  (6)  hPp://FinTechnews.sg/2240/FinTech/singapores-­‐FinTech-­‐startup-­‐scene/  (7)  Money  of  the  Future  (8)  hPps://www.techinasia.com/tryb-­‐FinTech-­‐partnership  (9)  hPp://uk.businessinsider.com/these-­‐are-­‐the-­‐top-­‐fintech-­‐deals-­‐in-­‐southeast-­‐asia-­‐2016-­‐8?r=US&IR=T  

APPENDIX  -­‐  Sources  

This  study  is  the  result  of  extensive  research  on  the  web  and  interviews  with  Singaporean  FinTech  leaders.    

•  Interviews:  Successful  entrepreneurs:    •  Otonomos:  Han  Verstraete  (founder  &  

CEO),  Mano  Thanabalan  •  Dragon  Wealth:  Bert-­‐Jan  Van  Essen  

(founder  &  CEO),  Stefano  Covolan  •  Kashmi:  Rakhil  Fernando  (founder  &  

CEO)  •  Open  Trade  Docs:  Roberto  Capodieci  

(founder  &  CEO)  •  ShereIT:  Amar  Banwait  (founder  &  

CEO)  •  Toast:  Aaron  Siwoku  (founder  &  CEO)  •  2C2P:  Aung  Kyaw  Moe  (founder  &  CEO)  •  Fastacash:  Vince  Tallent  (founder  &  

CEO)  

Banks:    •  Credit  Suisse:  Joseph  Toh  (ex-­‐  

APAC  Strategy  Head  -­‐  InformaJon  Technology)  Julien  Laurencon  (APAC  Strategy  Head  Deputy  

Event  organisers  •  Next  Money:  Rob  Findley  (Founder)    

Investors  •  Tryb:  Markus  Gnirck  (Co-­‐Founder)  •  Life  Sreda:  Igor  Pesin  (CFO)  

Accelerators  •  Startupbootcamp  FinTech  Singapore:  Steven  

Tong  (Managing  Director),  Fiona  Maguire  (COO),  Kate  Fitzpatrick  (Business  Development  &  MarkeJng)  

•  The  Singapore  FinTech  Consor@um:  Gerben  Visser  (Co-­‐Founder)  

Universi@es  •  ESSEC  Business  School:  Heloise  De  

Menthiere  (Event  Manager)  

Governmental  bodies  •  JFDI  Asia  

9  Thank  you!